PORTLAND REAL ESTATE MARKET - NOVEMBER 2023

In October, interest rates were over 8% which resulted in a slowing of the real estate market above and beyond a seasonal slowdown. Inventory rose to 3.5 months, though this is still historically considered a seller’s market, we haven’t seen more than 3 months of inventory in over 3 years. The rise in inventory was the result of decreased buyer activity rather than in influx of new listings since new listings decreased 17.2% from October. Closed sales also decreased by 19.5% from October to November. As we reflect on sluggish November in the Portland Metro market, December has brought us significant interest rate drops. On December 14^th, the headline read “One of The Biggest 2-Day Drops in Rates in Decades!” as rates dropped to 6.62%. This has a tremendous impact on increased buying power as a 1% decrease in interest rates equates to a 9% lower payment or 10% more buying power! As a result, mortgage purchase applications have been on the rise, and buyer activity is already picking up! Our team has helped five buyers get accepted offers on homes in just the last week.

2024 is expected to bring greater buyer motivation, lower interest rates, and more real estate activity. This is great news for both buyers and sellers. The opportunity many sidelined buyers have been waiting for is here – lower rates combined with sellers who are worn down by the market of the last few months and ready to negotiate! The average sale price experienced a slight dip of 2.2%, settling at $596,400, compared to $610,100 in the previous year. Similarly, the median sale price showed a decrease of 2.8%, going from $545,000 to $530,000. Seller conditions will also improve over the next few months as buyer demand increases. Whether you're buying, selling, or simply observing, staying informed is your greatest asset in navigating the exciting and dynamic world of real estate.